Ethicsgate

Monday, July 25, 2011

Still Hoping for Justice

This Is Considered Punishment?The New York Times by Joe Nocera - July 25, 2011OP-ED

Last Wednesday, nearly lost in the furor over Rupert-gate and the debt ceiling crisis, came the surprising news that the Federal Reserve has issued a cease-and-desist order against a Too-Big-to-Fail bank. The bank was Wells Fargo, which was also fined $85 million and ordered to compensate customers it had unfairly — indeed, illegally — taken advantage of during the subprime bubble. What made the news surprising, of course, was that the Federal Reserve has rarely, if ever, taken action against a bank for making predatory loans. Alan Greenspan, the former Fed chairman, didn’t believe in regulation and turned a blind eye to subprime abuses. His successor, Ben Bernanke, is not the ideologue that Greenspan is, but, as an institution, the Fed prefers to coddle banks rather than punish them. That the Fed would crack down on Wells Fargo would seem to suggest a long-overdue awakening. Yet, for anyone still hoping for justice in the wake of the financial crisis, the news was hardly encouraging. First, the Fed did not force Wells Fargo to admit guilt — and even let the company issue a press release blaming its wrongdoing on a “relatively small group.” The $85 million fine was a joke; in just the last quarter, Wells Fargo’s revenues exceeded $20 billion. And compensating borrowers isn’t going to hurt much either. By my calculation, it won’t top $20 million. Most upsetting of all, the settlement raises the question that just won’t go away: Why can’t the federal government prosecute financial wrongdoers? I realize that the Federal Reserve can’t bring a criminal case (and, to be fair, there are statutory limits on how big a fine it can levy). But the Justice Department certainly can. Yet ever since it lost an early case against two Bear Stearns fund managers in 2009, it has gone after only the smallest of small fry: individual borrowers, brokers and appraisers who lack the means to do much more than plead guilty. In March, for instance, I wrote about the sad case of Charlie Engle, the ultra-marathoner, who was convicted of lying on a liar loan — that is, exaggerating his income on a subprime mortgage application — even though the evidence against him was thin. Prosecuted by Neil H. MacBride, the U.S. attorney for the Eastern District of Virginia, Engle was sentenced to 21 months in prison. Now compare Engle’s alleged crime to the case the Federal Reserve brought against Wells Fargo Financial, which, until it was shut down last summer, was the subprime subsidiary of Wells Fargo, based in Des Moines. There were several allegations, but the one that caught my eye was that Wells employees “falsified income information on mortgage applications.” In other words, they lied on liar loans! The only difference is that the lying was done by a group of Wells Fargo brokers rather than by some poor sap like Charlie Engle. What’s more, this practice appears to have been quite widespread — “fostered,” as the Fed puts it, “by Wells Fargo Financial’s incentive compensation and sales quota programs.” Matthew R. Lee, the executive director of Inner City Press/Community on the Move and Fair Finance Watch, spent years bringing Wells’ subprime abuses to the attention of the Federal Reserve. “The way the compensation was designed ensured that abuses would take place,” he says. “It was a predatory system.” These are exactly the kind of loans — built on illegal practices — that gave us the financial crisis. Brokers working for subprime mortgage companies routinely doctored incomes to hand out subprime loans they knew the borrowers could never repay — and then, after taking their fat fees, shoveled the loans to Wall Street, which bundled them into subprime securities. This was the kindling that lit the inferno of September 2008. So again, I ask: Why is there no criminal investigation into what went on at Wells Fargo Financial? The person I called for answers was the press secretary to Nicholas A. Klinefeldt, the U.S. attorney for the Southern District of Iowa, which includes Des Moines. A glance at Klinefeldt’s 2011 press releases suggests that he takes the MacBride approach to mortgage fraud: only the little guy has anything to fear. Needless to say, his press secretary knew nothing about the Wells Fargo case and even questioned whether the Southern District of Iowa had jurisdiction. The next day, he referred me to a Justice Department spokeswoman. I wrote her an e-mail laying out my question as plainly as I could: “I am trying to understand why the mortgage brokers who work at a major bank are getting a pass when they have lied on liar loans,” I said. That was Friday. On Monday, at 8:30 p.m., a half-hour from press time, the Justice Department sent me a statement claiming that in 2010 “the number of defendants in mortgage fraud cases more than doubled” from 2009. Not one of those defendants ever worked for Wells Fargo Financial.

some banks have been lying on those docs for decades, so they all decided to do it! What is the gov't going to do, sue everyone, put them all in jail! Great scam, destroying any trust the people had in our gov't!!!1

You could have the beginnings of some Justice....if you start with the "individuals" who have the opportunity of interrogating OCA about their illegal issues.The fact that things here started with the attack of the whole entity called OCA and their beloved money maker and corruptor known as the...DDC.... was always been a problem. You can never take down Government by grabbing their testicles hard and heavy...you have to start by inching your way up there...toe by toe.The support must come for the innocuous litigators who have the internal goods on OCA, and then the hole is created for those in the media to relate that story thus creating the outlet for the secondary but more important issues for publication, that led or influenced the original cases...discrimination, DDC,crimes and abuses against humanity etc.I believe fully that there is a solution to every situation including OCA and it's power structure, but all angles have to be examined and scenarios reported, even if administrators believe that they are inconsequential. A Small hole in any egg leads to the bleeding of the entire egg with just the shell remaining..is an idea that needs to be looked at here.An real think tank should be put in place.

Join Senator Eric Adams Tonight !!

NYS Senator Adams Virtual Town Hall Tonight !

Re: U.S. Department of Justice

April 20, 2009: We expect to have the name of a specific contact person soon, to whom information may be presented to regarding any complaint and/or information filed with any FBI agent, squad or regional office that needs re-review, reconsideration or special attention. Meanwhile, the address is:U.S. Department of Justice, Office of Professional Responsibility, Room 3266, 950 Pennsylvania, N.W., Washington, D.C. 20530 --- Send us an email request and we will advise you directly once the contact information is made available.

April 20, 2009: WANTED!! - (1) Your ignored complaints to the Commission on Judicial Conduct; and (2) Your ignored or whitewashed complaints to any New York State Attorney Ethics Committee.SEND PDF FILES TO: CorruptCourts@gmail.com

Judge to Cancer Patient: No $$ for Treatment - See Thursday, June 14, 2007 Post

In Fairness to the Courts…

It is not easy being a judge, and disgraceful that the public usually only hears about the bad judges. And while this forum attempts to expose the reprehensible acts of corrupt courts, it is important to be fair to the many under-appreciated law-abiding judges and court employees. Judges are grossly under compensated, and must rely heavily on unnamed staff who sometimes carry their own biases and improper political agendas. So let's expose and eradicate the corruption, but we are socially obligated to consider: (1) how do we get our judges adequately compensated; and (2) what specific and constructive suggestions can be made and implemented to insure the integrity of our courts. Send, too, ideas to make the courts a better system for all of us!!

Our year-long investigation has confirmed that the purported judicial "ethics" enforcer, The New York State Commission on Judicial Conduct, is itself a biased, corrupt group that protects certain judges while destroying others who have become targets of the political thugs who control them. Something is terribly wrong when even our honest and law-abiding judges are failed by our justice system. The New York State system of justice is a corrupt process that has all but ruined the faith of the people in their government.

Milberg Weiss

Robert R. Reed

Position Available:Another NY Judge needed to be a Hero For Future Generations -- We need another elected New York Judge to come forward and speak out about the systemic corruption within and about the NY court system. Must be willing to assist in plans to restore integrity and the rule of law back to our treasured courts. Benefits: A good nights sleep, and an opportunity to become a hero for future generations. --- Salary: None --- Details: A few private meetings with friendly Federal Agents, and one big explosive press conference. For more details, contact: corruptcourts@gmail.com (Confidentiality Guaranteed- until the press conference, of course)

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Hope in the Fight Against Corruption in Our Courts Has Arrived. Her Name is Ann T. Pfau.